Crude oil futures slipped 0.33 percent to Rs 3,668 per barrel on February 6 as participants increased their short position as seen by the open interest.
The fall in the prices was also supported by data released by US Energy Information Administration on February 5 that showed crude inventories jumped by 3.4 million barrels last week.
Crude oil markets are facing a supply glut. Commercial crude oil inventories in the US rose by 3.4 million barrels, to 435 million barrels against market expectations of an increase of 2.8 million barrels for the week ending January 31, said Abhishek Bansal, Chairman and MD, Abans Group of Companies.
Crude oil prices edged higher in the last trading session and it closed near the strong resistance zone of Rs 3,700 level. On the hourly chart, prices closed above 20 and 60 days EMA, which is a positive sign for prices. If prices sustain above Rs 3,680 levels, then it may rally towards Rs 3,710-3,750 on an intraday basis, according to Axis Securities.
In the futures market, crude oil touched an intraday high of Rs 3,719 and an intraday low of Rs 3,665 per barrel on MCX. For the February series, the crude touched a low of Rs 3,551 and a high of Rs 4,663.
On the Multi Commodity Exchange, crude oil contracts for delivery in February slipped Rs 14, or 0.38 percent, to Rs 3,666 per barrel with a business turnover of 34,663 lots.
The price of Crude contracts for delivery in March were down Rs 13, or 0.35 to Rs 3,690 per barrel with a business volume of 3,549 lots.
The value of the February contracts that were traded so far is Rs 5,553.57 crore and those of March contracts saw a value of Rs 160.14 crore.
MCX crude oil is expected to trade positively with good support at Rs 3,620 level and intermediate support at Rs 3,660, according to Motilal Oswal.
West Texas Intermediate (WTI) crude gained 1.30 percent to $51.41 per barrel, while Brent crude, the international benchmark, was up 0.69 percent to $55.66 per barrel.